The approved draft legislation introduces crypto-asset reporting under the EU’s DAC8 directive.
Germany’s lower house of parliament (Bundestag) approved the draft law (KStTG) on 5 November 2025, aimed at implementing the EU’s DAC8 directive on the taxation of digital financial products, including crypto assets.
Under the draft law, crypto-asset service providers will be required to report detailed annual transaction data to the Bundeszentralamt für Steuern (BZSt). The BZSt will then automatically share this information with tax authorities in other jurisdictions, thereby enhancing international tax transparency.
The law introduces strict due diligence obligations (Sorgfaltspflichten), record-keeping requirements, and penalties (Bußgeldvorschriften) for both providers and users who fail to comply.
To support these rules, the draft also proposes amendments to existing legislation, including the EU Administrative Assistance Act, the Financial Account Information Exchange Act, and the Fiscal Administration Act, ensuring that crypto-related reporting aligns with broader cross-border tax cooperation.
Implementation is expected to generate significant one-time and ongoing costs (Erfüllungsaufwand) for federal and state authorities, businesses, and citizens.
EU member states are required to transpose the DAC8 rules into domestic law by 31 December 2025, with the regulations set to take effect on 1 January 2026.
